2011-03-19T11:05:21-05:00 2010-06-30 Bollus Lynch LLP 89 Shrewsbury Street Worcester MA 01604 990 2009-07-01 042105859 THE WORCESTER CENTER FOR CRAFTS INC WORC 5087538183 25 SAGAMORE ROAD WORCESTER MA 01605 KATHLEEN EICHELROTH 5087538183 2011-03-04 1 Barbara E King 5087557107 2011-03-04 2009 2016-02-24 21:20:13Z KATHLEEN EICHELROTH 25 SAGAMORE ROAD WORCESTER MA 01605 886058 0 X worcestercraftcenter.org X 1883 MA TO FOSTER INTEREST, UNDERSTANDING, AND ASSISTANCE TO INDIVIDUALS OF ALL AGES THROUGH EDUCATION IN THE CRAFTS. 9 9 30 25 0 0 139313 386071 242832 237708 418 -1301 5668 164109 388231 786587 0 0 335506 321814 0 22954 479375 424432 814881 746246 -426650 40341 1244302 1340804 814912 865414 429390 475390 Sustaining craft as a vital part of our community. 0 0 318440 174970 INSTRUCTIONAL - TO FOSTER INTEREST, UNDERSTANDING AND ASSISTANCE TO INDIVIDUALS OF ALL AGES THROUGH EDUCATION IN THE CRAFTS. 20836 62738 CRAFT FAIRS - CRAFT FAIRS ARE HELD ANNUALLY FEATURING FINE CRAFTS BY PROFESSIONAL ARTISTS. THE FAIRS ARE BY INVITATION AND/OR JURIED EVENTS AND FEATURE WORK SIMILAR TO THE GALLERY EXHIBITS. IN MOST CASES THE CRAFT WORK IS AVAILABLE FOR PURCHASE. 28650 EXHIBITS - THE CRAFT CENTER IN-PART SUPPORTS ITS MISSION BY EXHIBITING STUDENT, FACULTY AND GUEST ARTIST'S WORK IN ITS GALLERY SPACE FROM TIME TO TIME THROUGHOUT THE YEAR. THE EXHIBITS ARE GENERALLY IN MEDIUMS TAUGHT AT THE CRAFT CENTER SUCH AS GLASS, CERAMICS, METALS AND PHOTOGRAPHY. 367926 1 1 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 0 1 4 0 1 30 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 9 9 1 1 1 0 0 1 0 1 1 1 0 1 0 1 0 1 1 0 MA X THE WORCESTER CENTER FOR CRAFTS INC 5087538183 25 SAGAMORE ROAD worcester MA 01605 WILLIAM F O'NEIL EDD 5.00 X X 0 0 0 KATHLEEN M EICHELROTH 5.00 X X 0 0 0 THOMAS M MCNAMARA 5.00 X X 0 0 0 JAMES D GLICKMAN 5.00 X 0 0 0 MICHAEL LORION 5.00 X 0 0 0 STEPHEN MIRICK 5.00 X 0 0 0 MARY C RITTER 5.00 X 0 0 0 EDWARD L SHERR 5.00 X 0 0 0 WILLIAM H WHITE EDD 5.00 X 0 0 0 TAMMY NIGOSIAN 40.00 X 0 57614 0 0 57614 0 0 0 0 0 SIMPLEX GRINNELL 63 nAHATAN sTREET NORWOOD MA 020625733 SECURITY CONTRACTOR 113698 1 386071 386071 TUITION & FEES 611710 174970 174970 craft fairs 611710 62738 62738 237708 1240 1240 145833 145833 145833 145833 7229 9770 -2541 -2541 -2541 107977 89701 18276 18276 786587 399276 0 1240 57614 57614 201526 88032 113494 44122 14989 29133 18552 6302 12250 17511 17511 1053 1053 8000 8000 3583 3363 220 21381 18637 2744 55707 18073 37634 25872 1434 24438 106627 81036 23458 2133 13123 10957 1500 666 REPAIRS & MAINTENANCE 55128 40262 13627 1239 RENTAL FEES 43840 43840 STUDIO MATERIALS & SUPP 24257 21040 3217 UNCOLLECTIBLE ACCOUNTS 18696 18696 POSTAGE & SHIPPING 9350 6217 3133 20304 13744 6560 746246 367926 355366 22954 13862 107393 62935 63332 3000 57955 50469 4051 2183 2965031 1958738 1045366 1006293 39154 40200 16292 50761 4687 17173 1244302 1340804 201928 101913 17394 25730 100000 582952 631681 12638 6090 814912 865414 X 54239 114959 279906 265186 95245 95245 429390 475390 1244302 1340804 X 0 1 1 X 0 X 540488 207541 529536 139313 386071 1802949 895247 1122030 878253 323636 491518 3710684 1435735 1329571 1407789 462949 877589 5513633 7732 7732 218884 120000 172967 41212 553063 226616 120000 172967 41212 560795 4952838 3116 3891 4742 2371 1240 15360 3116 3891 4742 2371 1240 15360 1438851 1333462 1412531 465320 878829 5528993 0.89580 0.88100 0.00280 0.00390 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 57748 36335 4340 -7462 90961 109414 -10319 -43649 55446 0.02000 0.98000 0 0 100400 100400 2262918 1415752 847166 601713 542986 58727 1006293 CAPITAL LEASE OBLIGATIONS 6090 6090 786587 746246 40341 5659 5659 46000 881947 5659 89701 95360 786587 0 786587 835947 89701 89701 746246 0 746246 Part V, Line 4: Description of Intended Use of Endowment Funds: The Crafts Center's endowment consists of numerous funds established for a variety of purposes. Its endowment includes donor restricted endowment funds. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed or legal restrictions. The Board of Trustees has interpreted state law as allowing the utilization of appreciation on permanently restricted assets unless explicit donor stipulations specify how net appreciation must be used. As a result of this interpretation, the Crafts Center classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Crafts Center in a manner consistent with the standard of prudence prescribed by state law. The Crafts Center has adopted spending procedures for its endowment assets that attempt to provide a predictable stream of funding for its programs while seeking to maintain the purchasing power of the endowment assets. Under this procedure, as approved by the Board, the Crafts Center shall seek to invest the endowment funds in such a manner that the investments will provide a spendable return consistent with a long-term goal of preserving the funds in real terms. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the Crafts Center relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Crafts Center has invested in short term and equity securities that target a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The Crafts Center has a procedure of appropriating for expenditure each year only the actual earnings of its investments. In establishing this procedure, the Center considered the long-term expected return on its endowment. This is consistent with the Crafts Center's objective to maintain the purchasing power of its endowment. Part XII, Line 2d - Other Adjustments: COST OF GOODS SOLD: 89701. Part XIII, Line 2d - Other Adjustments: COST OF GOODS SOLD: 89701. DAVID FIRSTENBERG FUNDS FOR OPERATING EXPENSES X 100000 100000 0 1 1 100000 DAVID FIRSTENBERG PRESIDENT OF THE BOARD OF TRUSTEES. 1973 DAVID FIRSTENBERG, PRESIDENT OF THE BOARD, LOANED THE CRAFTS CENTER $100,000 TO AID IN PAYMENT OF OPERATING EXPENSES. THE LOAN ACCUMULATES INTEREST EACH YEAR. 0 Form 990, Part VI, Section A, line 2 SOME OF THE BOARD MEMBERS ARE WORCESTER STATE COLLEGE STAFF AND SOME ARE BOARD MEMBERS OF WORCESTER STATE FOUNDATION. THE EXECUTIVE DIRECTOR, DIRECTOR OF FINANCE, AND PROGRAM DIRECTOR ARE ALL PAID BY WORCESTER STATE COLLEGE. Form 990, Part VI, Section A, line 3 The Board of Trustees determined on January 5, 2009 that it was necessary to announce a strategic pause in operations due to several years of operating deficits, increasing debt burden, declining enrollment and increased expenses. The trustees felt the most responsible path to follow was one that paused operations to allow for the opportunity to create a plan to preserve the future of the Crafts Center. After several months of negotiations, an agreement was reached with Worcester State College ('WSC') to form an alliance, which commenced on July 1, 2009. The objective of this alliance is to preserve the educational mission of the Crafts Center and enhance WSC's visual and performing arts program. The Affiliation Agreement enables WSC and the WSC Foundation to provide financial and operational support in exchange for an exclusive service agreement to provide studio space and program coordination and oversight at the Craft Center. The Crafts Center retained its non-profit 501(c)3 status. Under this alliance the Crafts Center adopted new articles of organization that identifies WSC Foundation as the sole member of the organization with the Crafts Center coming under the control of the WSC Foundation and being treated as a wholly-owned subsidiary. The Craft Center was required to change its fiscal year under the new organization effective June 30, 2009, changing the fiscal year cycle to July 1st through June 30th. In order for the new organization of the Crafts Center to start with a clean slate the existing debt was extinguished with a related party loan from the WSC Foundation. Loan documents were executed between the Craft Center and the WSC Foundation, on July 1, 2009, providing for a loan of $412,500. From this loan and an advance of operating funds from WSC Foundation, the Crafts Center paid the Non-Profit Finance Fund (NFF) loan in full resulting in the NFF no longer being a creditor. The remaining funds will be used to address vendor debt so that operations may resume. Further, the note payable, bank and the notes payable, other were re-negotiated to a five year term loans. The newly formed board addressed resuming operations as early as September 2009, initially offering programs that historically were sustainable. A budget was developed with new sources of revenue from the agreement between WSC and the Crafts Center, recently awarded grants, in-kind services from WSC and programs. Plans to start an active funds development plan started immediately and are supported by the staff at the WSC Foundation. It is the intent of the board to build-back the organization in a fiscally responsible manner, adding programs as supported by the community and staff as needed by the growth of the organization. Other components of the Crafts Center will be phased in as funds allow such as the Gallery Gift Shop, Gallery Exhibits and additional programming. A strategic business and marketing plan will be developed. An advisory committee will be established to provide expertise in several areas. Form 990, Part VI, Section A, line 4 Amended By-Laws instituted July 1, 2009. Alliance agreement filed July 1, 2009. 501(C)3 status remained the same. Form 990, Part VI, Section A, line 7a WORCESTER STATE FOUNDATION IS THE SOLE MEMBER OF THE WORCESTER CENTER FOR CRAFTS. SOME OF THE WORCESTER CENTER FOR CRAFTS BOARD MEMBERS ARE WORCESTER STATE FOUNDATION BOARD MEMBERS. Form 990, Part VI, Section B, line 11 THE 990 WILL BE REVIEWED BY THE DIRECTOR OF FINANCE, EXECUTIVE DIRECTOR AND BOARD TREASURER PRIOR TO FILING. Form 990, Part VI, Section B, line 15 THE BOARD AND/OR MANAGEMENT DETERMINE FMV FOR THESE POSITIONS BASED ON PUBLIC AND STATE (WORCESTER STATE COLLEGE) DATA AVAILABLE TO PROVIDE AN APPROPRIATE SALARY RANGE FOR EACH POSITION. Form 990, Part VI, Section C, line 19 DOCUMENTS ARE AVAILABLE UPON REQUEST TO THE EXECUTIVE DIRECTOR OR DIRECTOR OF FINANCE AND ANNUAL REPORTING WITH THE ATTORNEY GENERAL. FORM 990, PART III, QUESTION 1 THE ORGANIZATION BEGAN EDUCATIONAL PROGRAMS IN 5 STUDIOS DURING THIS YEAR. FORM 990, PART VI, SEC. A, QUESTION 9 TAMMY NIGOSIAN IS LISTED AS A KEY EMPLOYEE BUT IS NO LONGER EMPLOYED AT THE CRAFT CENTER AT YEAR END, THEREFORE, CANNOT BE CONTACTED AT THE COMPANY'S MAILING ADDRESS ANY LONGER. WORCESTER STATE COLLEGE 486 CHANDLER STREET WORCESTER MA 01602 042760551 PUBLIC INSTITUTION OF HIGHER LEARNING MA SECTION 115 0 0 0 1 1 0 0 0 1 0 0 0 1 1 0 0 0 1 WORCESTER STATE COLLEGE R 145833 wORCESTER STATE FOUNDATION D 11500 wORCESTER STATE COLLEGE N 207636 WORCESTER STATE FOUNDATION E 412500 WORCESTER STATE FOUNDATION R 50000